JERUSALEM – Palestinian Prime Minister Ahmed Qureia, fed up with fighting Yasser Arafat for control over security issues, yesterday indicated he’s set to quit the post.

Wary top Israeli sources said the move wasn’t unexpected, given Arafat’s power grab over security of Palestinian-controlled territories.

And they said the Palestinian chief is already busy trying to lay the groundwork for creating some new, bigger headlines of his own – planning to call for a new “cease-fire” with Israel in coming weeks.

Qureia, who heads an emergency Palestinian Cabinet under Arafat, hinted publicly at his pending exit by saying that when his group’s term expires in less than a month, a new government will be formed “with a new prime minister, too.”

Qureia and Arafat have been battling for days over who should be controlling Palestinian security forces, including everything from selecting a leader to overseeing police and soldiers.

Both Israel and the United States have demanded that Arafat relinquish any control, since they say he has ties to terrorists. But Arafat insists on retaining power.

At the center of the Palestinian controversy is interim Interior Minister Nasser Yusef.

Arafat originally handpicked him, but later backed away from appointing him permanently after the pair fought over parliamentary procedure.

Qureia said Arafat should still support Yusef, because to not do so at this late date would send an irreparable message the regime was in turmoil.

Qureia is already the second prime minister the Palestinians have had in just over a month. His predecessor, Mahmoud Abbas, resigned abruptly Sept. 6 after similar bouts with Arafat.